Wisconsin VA Loan Guide for Veterans
Wisconsin is home to a dedicated and thriving community of veterans, active-duty service members, and their families, all of whom can take advantage of the powerful benefits offered by VA loans.
VA loans in Wisconsin offer a remarkable opportunity for homeownership, with no down payment, competitive interest rates, and no private mortgage insurance. These advantages help veterans and service members overcome financial barriers and make purchasing a home more affordable.
This guide will walk you through the VA loan process, from eligibility requirements and application steps to local homebuyer assistance programs and property tax benefits, ensuring a smooth and successful path to owning your dream home in Wisconsin.
What are VA Loans?
VA home loans, backed by the U.S. Department of Veterans Affairs, are tailored to help eligible veterans, active-duty service members, and qualified surviving spouses achieve the goal of homeownership. By removing common barriers such as down payments and private mortgage insurance (PMI), these loans significantly lower upfront expenses and monthly costs.
One of the standout benefits of VA loans is their competitive interest rates, which are typically lower than those of conventional mortgages, leading to substantial long-term savings. Additionally, the program features flexible credit guidelines, making it an excellent choice for borrowers who may face challenges qualifying for traditional loan options.
VA Loan Benefits
VA loans offer distinct advantages, making them an exceptional choice for veterans, active-duty service members, and eligible surviving spouses. Key benefits include:
No Down Payment
Unlike conventional loans that often require a down payment starting at 3% or more, VA loans remove this hurdle, enabling buyers to allocate funds toward other priorities, such as investments or savings goals. For military families, this can be a game-changer.
Lower Interest Rates
Lower rates mean significant savings over the life of the loan, reducing monthly payments and overall costs. This advantage also increases purchasing power, allowing veterans to afford higher-value homes without exceeding their budget.
Flexible Credit Guidelines
While credit score requirements vary by lender, VA loans often accept scores as low as 620. They also allow for higher debt-to-income (DTI) ratios and provide shorter waiting periods after financial setbacks like bankruptcies or foreclosures.
Limited Closing Costs
Sellers can pay all the buyer’s loan-related closing costs and contribute up to 4% of the loan amount in concessions. Additionally, VA borrowers are exempt from certain fees, further reducing out-of-pocket expenses.
No Private Mortgage Insurance (PMI)
This saves veterans hundreds of dollars annually and maximizes their purchasing power, allowing them to afford more home within their budget. FHA loans, which require both upfront and monthly mortgage insurance premiums, also lack this advantage.
Lifetime Eligibility
VA loan benefits are available for a lifetime, allowing eligible borrowers to reuse them multiple times as long as entitlement criteria are met.
Whether purchasing a first home, upgrading to a larger property, or buying a vacation home, veterans can rely on VA loans at every stage of life. Even if a prior VA loan default occurred, eligibility can often be restored by repaying the loan or reclaiming entitlement. This ensures long-term access to affordable financing options.
Local Wisconsin Homebuyer Programs
Milwaukee Home Down Payment Assistance Program
Milwaukee offers forgivable grants to assist first-time homebuyers with down payments and closing costs.
- Provides up to $5,000 for home purchases in Milwaukee.
- Grants up to $7,000 in Community Development Block Grant areas.
- Requires completion of a homebuyer education course.
Learn more about the Milwaukee Home Down Payment Assistance Program.
Housing Resources, Inc. Homebuyer Education Program
This program helps Milwaukee residents prepare for homeownership through education and counseling.
- Offers homebuyer education workshops.
- Provides one-on-one financial counseling.
- Assists with navigating mortgage options.
Learn more about Housing Resources, Inc..
WHEDA First-Time Home Buyer Program
The statewide WHEDA program offers affordable mortgage options for income-qualified Milwaukee residents.
- Provides fixed-rate mortgages with affordable terms.
- Offers down payment assistance up to 6% of purchase price.
- Designed for first-time and low-to-moderate-income buyers.
Learn more about the WHEDA First-Time Home Buyer Program.
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City of Madison Down Payment Assistance Program
Madison helps first-time homebuyers with financial assistance for down payments and closing costs.- Provides deferred loans for eligible buyers.
- Targets low- and moderate-income families.
- Requires completion of a homebuyer education course.
Learn more about the City of Madison Down Payment Assistance Program.
Project Home’s Homeownership Assistance
This program ensures Madison residents have safe and affordable housing by assisting with home repairs.- Offers low-interest loans for critical repairs.
- Provides emergency repair grants for qualified buyers.
- Available to income-qualified homeowners.
Learn more about Project Home’s Homeownership Program.
Movin’ Out Homebuyer Assistance
This program serves households with disabled family members looking to purchase a home in Madison.- Provides affordable loans and down payment assistance.
- Offers housing counseling services.
- Designed for income-eligible families.
Learn more about Movin’ Out Homebuyer Assistance.
Green Bay Neighborhood Development Foundation Homebuyer Program
This program helps low- and moderate-income families purchase homes in Green Bay.
- Provides down payment and closing cost assistance.
- Requires participation in homebuyer education classes.
- Designed for first-time homebuyers.
Learn more about the Neighborhood Development Foundation Program.
NeighborWorks Green Bay Homebuyer Assistance
NeighborWorks offers education, counseling, and financial assistance to help buyers in Green Bay.
- Provides down payment and closing cost support.
- Offers homebuyer education workshops.
- Assists income-qualified buyers.
Learn more about NeighborWorks Green Bay.
Brown County Down Payment Assistance Program
This county-wide program supports Green Bay residents in overcoming financial barriers to homeownership.
- Offers deferred payment loans for down payments.
- Targets income-qualified first-time buyers.
- Requires homebuyer education course completion.
Learn more about the Brown County Assistance Program.
City of Kenosha Down Payment Assistance Program
Kenosha helps low- to moderate-income residents with down payments and closing costs.
- Provides forgivable loans for first-time homebuyers.
- Income eligibility requirements apply.
- Requires homebuyer education completion.
Learn more about the City of Kenosha Down Payment Assistance Program.
Kenosha/Racine Lead-Free Communities Partnership
This program focuses on making homes lead-safe for families across Kenosha and Racine counties.
- Offers grants for lead hazard abatement.
- Targets homes built before 1978.
- Available to homeowners and landlords.
Learn more about the Lead-Free Communities Partnership.
Kenosha Housing Authority Homeownership Program
The Kenosha Housing Authority assists Section 8 participants with purchasing homes.
- Provides homebuyer counseling and support.
- Targets Housing Authority program participants.
- Requires completion of homebuyer education courses.
Learn more about the Kenosha Housing Authority Program.
Racine First-Time Homebuyer Program
Racine supports first-time homebuyers with grants for down payments and closing costs.
- Offers forgivable loans for financial assistance.
- Designed for low- and moderate-income families.
- Requires homebuyer education course completion.
Learn more about the Racine First-Time Homebuyer Program.
Down Payment Plus Program – Racine
This statewide program is available to Racine residents through participating banks.
- Provides up to $6,000 in down payment assistance.
- Grants are forgiven after five years of homeownership.
- Designed for low-income first-time buyers.
Learn more about the Down Payment Plus Program.
Racine Habitat for Humanity Homeownership Program
Habitat for Humanity provides affordable housing opportunities for qualifying Racine families.
- Offers interest-free mortgages for income-qualified buyers.
- Requires “sweat equity” participation and homebuyer education.
- Targets families needing affordable housing solutions.
Learn more about Racine Habitat for Humanity.
VA Loan Eligibility Criteria
To qualify for a VA loan, applicants must meet certain service-related criteria set by the Department of Veterans Affairs (VA). These requirements ensure that veterans, active-duty service members, and their families have access to this benefit to assist in homeownership.
Eligibility Criteria:
- Veterans: Those who have completed active-duty service and received an honorable or qualifying discharge.
- Active-Duty Service Members: Current members of the military are eligible for VA loans.
- National Guard and Reserve Members: Must have served at least six years or completed 90 days of active-duty service during wartime.
- Surviving Spouses: Spouses of service members who passed away during service or from service-related conditions may be eligible for VA loan benefits.
Minimum Service Time Requirements:
- 90 days of active-duty service during wartime.
- 181 days of continuous active-duty service during peacetime.
- At least six years of service in the National Guard or Reserves, or a minimum of 90 days of active-duty service under Title 32 orders, including 30 consecutive days.
VA Loan Eligibility Calculator
How to Obtain a Certificate of Eligibility (COE)
Obtaining a VA Certificate of Eligibility (COE) is an essential step in securing a VA loan. This certificate confirms that you meet the service requirements established by the Department of Veterans Affairs.
How to Apply:
- Online: Use the VA’s eBenefits portal for a quick and easy application process.
- Through a Lender: Many VA-approved lenders can request your COE electronically on your behalf.
- By Mail: Complete and submit VA Form 26-1880 to the VA. This method may take longer.
Required Documents:
- Veterans: DD Form 214, which outlines your service history and discharge status.
- Active-Duty Service Members: A statement of service signed by your commanding officer.
- National Guard/Reserve Members: Point statements and proof of service, if not activated.
- Surviving Spouses: A marriage license and the veteran’s death certificate to verify eligibility
Wisconsin Housing Market Overview
Wisconsin’s housing market provides a mix of urban living in cities like Milwaukee and Madison, and the scenic charm of its countryside and lakeside properties. The state has a strong economy, diverse job sectors, and attractive housing options for all buyers, including veterans. The median home price in Wisconsin is around $280,000, which is relatively affordable compared to national averages, especially with VA loan benefits.
| City | Average Home Price | Average VA Mortgage Payment* |
|---|---|---|
| Milwaukee | $295,000 | $2,312 |
| Madison | $360,000 | $2,827 |
| Green Bay | $245,000 | $1,906 |
| Kenosha | $270,000 | $2,099 |
| Racine | $215,000 | $1,707 |
The VA mortgage payment is based on a 30-year fixed loan at 6.5% interest with zero down payment. Actual payments may vary.
Wisconsin VA Loan Limit
$1,089,300
Veterans with full entitlement can borrow up to the lender-approved amount without a down payment. For veterans with partial entitlement, the loan limit for most counties in Wisconsin is $1,089,300, especially in higher-cost areas like Madison and Milwaukee. Always consult with lenders to confirm your specific loan eligibility and options.
Wisconsin Housing Programs for Veterans
Wisconsin Housing and Economic Development Authority (WHEDA) – First-Time Home Buyer Program
WHEDA offers a variety of programs to assist first-time buyers, including veterans, in Wisconsin.
- Provides fixed-rate loans with low interest.
- Down payment assistance available for qualified buyers.
- Available to first-time and low-to-moderate-income buyers.
Learn more about the WHEDA First-Time Home Buyer Program.
Habitat for Humanity Wisconsin – Veterans Housing Program
Habitat for Humanity collaborates with veterans across Wisconsin to provide affordable housing.
- Veterans can contribute “sweat equity” to help lower costs.
- Provides affordable mortgage options with counseling.
- Aimed at promoting long-term housing stability for veterans.
Visit Habitat for Humanity Wisconsin for more details.
Wisconsin Property Tax Exemption for Disabled Veterans
This program offers tax relief for veterans with service-connected disabilities in Wisconsin.
- Full property tax exemption on the veteran’s primary residence.
- Available to surviving spouses of disabled veterans.
- Reduces homeownership costs significantly.
Learn more through the Wisconsin Department of Revenue.
Types of VA Loans
The Department of Veterans Affairs provides various loan options to support veterans, active-duty service members, and their families in Wisconsin.
VA Purchase Loan
The VA Purchase Loan helps veterans buy homes with no down payment and competitive interest rates.
- 100% financing with no down payment required.
- Covers single-family homes, VA-approved condos, and multi-unit properties.
- Offers lower interest rates compared to conventional loans.
Learn more about the VA Purchase Loan.
Interest Rate Reduction Refinance Loan (IRRRL)
The IRRRL helps veterans refinance their mortgage to secure a lower interest rate and reduce payments.
- Minimal documentation and no appraisal required.
- Reduces monthly payments by lowering interest rates.
- Low closing costs, often rolled into the loan.
Learn more about the IRRRL.
Cash-Out Refinance Loan
This loan allows veterans to access home equity for improvements or debt consolidation.
- Access up to 100% of your home equity.
- Refinance both VA and non-VA loans.
- Flexible funds for personal or financial goals.
Learn more about the Cash-Out Refinance Loan.
VA Renovation Loan
The VA Renovation Loan helps finance the purchase and renovation of a home in a single loan.
- Covers essential repairs and upgrades.
- Supports projects like energy-efficient improvements.
- Simplifies the renovation process with one loan.
Learn more about the VA Renovation Loan.
Energy Efficient Mortgage (EEM)
This loan helps veterans finance energy-efficient upgrades for their homes.
- Covers improvements such as solar panels and insulation.
- Can be combined with other VA loan options.
- Helps reduce long-term utility costs.
Learn more about the VA EEM.
Frequently Asked Questions
What is a VA loan, and how does it work?
A VA loan is a government-backed mortgage designed for veterans, active-duty service members, and surviving spouses. It offers benefits like no down payment, competitive interest rates, and no private mortgage insurance (PMI), making it a great option for homebuyers.
What are the benefits of a VA loan in Wisconsin?
VA loan benefits for Wisconsin veterans include:
- No down payment requirement.
- Lower interest rates than conventional loans.
- No PMI, reducing monthly costs.
- Flexible credit and income requirements.
- Options for purchasing, refinancing, or renovating homes.
How do I qualify for a VA loan in Wisconsin?
To qualify for a VA loan in Wisconsin, you must meet service history and duty status requirements and obtain a Certificate of Eligibility (COE). Lenders also have their credit and income requirements, and the property must be your primary residence.
What is the VA funding fee, and do I have to pay it?
The VA funding fee is a one-time cost to support the VA loan program. The fee varies depending on the loan type, down payment, and prior VA loan use. Some veterans, such as those with service-connected disabilities, are exempt from this fee.
Can I use a VA loan to buy a home in Wisconsin’s rural areas?
Yes, VA loans can be used in rural areas across Wisconsin for homes, including single-family houses, manufactured homes, and VA-approved condos, provided the property meets VA guidelines.
Are there VA loan limits in Wisconsin?
Yes, the VA loan limit in Wisconsin for 2024 is $1,089,300 for veterans with full entitlement, although partial entitlement veterans may have a lower limit. Loan limits vary by county and property type.
Can I refinance my home in Wisconsin with a VA loan?
Yes, veterans in Wisconsin can refinance with a VA loan, either using the Interest Rate Reduction Refinance Loan (IRRRL) to lower interest rates or the Cash-Out Refinance Loan to access home equity.
What credit score do I need to qualify for a VA loan in Wisconsin?
The VA doesn’t set a specific credit score requirement, but most lenders look for a score between 580 and 620. Other factors, such as income and debt-to-income ratio, are also taken into account.
Can I buy a multi-family property with a VA loan in Wisconsin?
Yes, VA loans can finance multi-family properties with up to four units. However, you must live in one of the units as your primary residence.
Are there closing costs with VA loans in Wisconsin?
Yes, VA loans do include closing costs like appraisal fees and title insurance. However, they are typically lower than conventional loans, and sellers may sometimes cover part of the closing costs.
Can I use a VA loan to renovate a home in Wisconsin?
Yes, the VA Renovation Loan allows veterans to finance both the purchase and renovation costs of a home, including repairs and improvements.
What assistance programs are available for veterans buying homes in Wisconsin?
Veterans in Wisconsin can access various programs, including:
- WHEDA First-Time Home Buyer Program: Offers down payment assistance and affordable mortgage options.
- Disabled Veteran Property Tax Exemption: Provides tax relief for eligible veterans with disabilities.
Visit local VA offices or housing agencies for more details.
Can surviving spouses use a VA loan in Wisconsin?
Yes, surviving spouses of veterans who died in service or due to service-related disabilities can qualify for VA loans. Eligibility requires appropriate documentation and a Certificate of Eligibility (COE).
What types of properties can I buy with a VA loan in Wisconsin?
VA loans in Wisconsin can be used to purchase:
- Single-family homes.
- VA-approved condos.
- Multi-family properties with up to four units.
- Manufactured homes (if they meet VA standards).
Are VA loans only for first-time homebuyers in Wisconsin?
No, VA loans are available to eligible veterans and service members regardless of whether it’s their first home purchase or not. You can use the benefit multiple times as long as you meet the eligibility criteria.